Peanut News

    APGG shelled 7,819 tons of farmer stock during April, bringing our total shelled to 55,463 tons YTD.  When deducted from our total handlings of 2007 crop of 71,700 tons it leaves approximately 16,237 tons left to shell.  This remaining tonnage puts us on track to finish shelling near the end of the first week of July.
 
    Planting is underway in the Southeast, with most areas somewhat ahead of normal.  Georgia is reported at 20% planted through May 11th.  Texas is leading the pack at an estimated 48%, with Florida barely behind at an estimated 44% through the same date.  Our growers have completed 2008 Crop Planting Intention Projections for us, and it looks like we will handle 39,958 acres in 2008, versus 39,695 acres in 2007, only an increase of 263 acres.  So any increase in Southwest Georgia will come from other growers.  Corn prices are still up, but cotton and soybean prices are somewhat reduced.   
 
    Seed movement has been very good.  Definitely, peanut acres will be up, but everyone is unsure as to just how much.  It is terribly dry in the Southeast and some dryland growers cannot plant until a rain comes.
 
    While peanut consumption has shown some sign of weakness recently, the market remains high with most every seller withdrawn, and not much more than a very few spot loads available.  Communication seems to reveal that many shellers (such as ourselves) have continued to build up some positive aflatoxin inventory, and have been hard-pressed to get it remilled, with heavy orders from manufacturers.  I even understand that several handlers in the V/C region, which normally never have aflatoxin problems, have alot of inventory out of grade.  This further proves how dry and stressed some regions were this past growing season.  It also proves why some product which has been shelled already cannot be sold and/or moved, therefore mudding our numbers on some reports, etc.
 
    Peanut export interest has continued strong from many countries, however interest from most of the Europeans has seem to have slowed.  I'm sure that their needs are now being filled by the Argentine crop in the process of being harvested.  Argentina did have an increase in hectares this year, but they too have had rough weather recently, experiencing a heavy frost earlier than normal, and a pretty extreme hailstorm.  Some say the crop was not hurt, while others say they have lost about the same amount as their increase in acreage would have provided.  China is expected to increase peanut acres in the coming year as well.
 
    Speaking of China,  it is amazing to see that the demand for rice has decreased along with wheat and pork, but all other items have increased, and many in a very big way.  The increase in populations and economies in both China and India seem to be the real underlying reason that our foodstuffs are increasing.  However, biofuels are getting much of the blame for increases in prices of many articles in the U.S.  Whatever side of the aisle you might elect to fight for concerning this topic, I think we all agree that volatile swings in prices like we have seen over the past couple of years, coupled with high demand for oil, and a weak dollar, certainly means that the U.S. better be trying to get some regularity back in trading as soon as possible.
 
    In my opinion, we have decided to begin weaning ourselves off other fuel sources at the same time the economies in both China and India are exploding.  I am worried that not only are we jeopardizing the inexpensive, more-than-adequate food supply that the U.S. has enjoyed for decades, but we are also doing it at such a fast rate that our economy can't learn how to handle it.  Then add to this the volatility that is created with these price swings, and it is possible that our country might see times again when you deliver something but not get paid at all...something we have not had to deal with much over the past (3) decades.  At the same time, fuel prices double, and lower-paid workers cannot manage the rate of all the increases.  It is a big problem, and one that will take many different areas of change to improve it, at least in my opinion.

Sincerely,     

Terry L. Shamblin, President & CEO
American Peanut Growers Group, LLC